Endesa shells out 1 billion euros for Acciona Energía's hydroelectric business

Corporación Acciona Hidráulica's portfolio in Spain consists of 34 plants with a total installed capacity of 626 MW

Europa Press

Madrid

Friday, 22 November 2024, 12:33

Endesa has reached an agreement with Acciona Energía for the purchase of 626 megawatts (MW) of hydroelectric assets in Spain for 1 billion euros, as stated in a company statement. Acciona is chaired by José Manuel Entrecanales.

To elaborate further, with this transaction Acciona Energía divests itself 100% from the company Corporación Acciona Hidráulica. The acquisition is debt-free and will generate an estimated capital gain of 620 million euros.

The deal is expected to close in the first half of 2025, once the necessary competition and foreign investment approvals have been obtained.

Corporación Acciona Hidráulica's portfolio in Spain consists of 34 hydroelectric plants with a total installed capacity of 626 MW. The plants are located in Aragón, Soria, Valencia and Navarra and have long-term concession agreements with an average remaining life of around 30 years.

These facilities are reservoir (storage hydropower, 56% of output), run-of-the-river (power generated from flowing waters, producing 30%), and pumped-storage hydropower (14%) or PSH plants (two reservoirs at different elevations with power generated by discharging water downhill), with an annual production of around 1.3 TWh.

Acciona Energía indicated that this deal "forms part of its asset rotation strategy." It comes on top of the sale a few days ago of 175 MW of hydroelectric power to Elawan Energy, a subsidiary of Orix Corporation, for 293 million euros with capital gains amounting to 180 million euros.

800 million in capital gains

With these two deals agreed this week, the group headed by José Manuel Entrecanales will generate a total capital gain of around 800 million euros.

Meanwhile, with this purchase Endesa makes some gains in the renewable energy generation business - one of its key strategic objectives - and recovers some hydropower assets that it originally owned. Those assets had ended up in the hands of Acciona back in 2009 when the alliance formed between Italian energy company Enel and Acciona as part of a takeover bid of Endesa fell through.

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